Orthogonal Frequency Division Multiplexing is used extensively in many transmission applications, for example, wireless communications systems, wireless LANs, Digital Audio Broadcasting, Digital Subscriber Loops, or the like. Unfortunately, a major disadvantage of an OFDM system is its large peak-to-average power ratio (PAPR). This results because OFDM is a multicarrier transmission system and, therefore, it is possible for the carrier components to align their phases and add coherently giving rise to large peak amplitudes. Several attempts have been made at solving this problem. In one attempt level-clipping is employed in which amplitudes above a prescribed threshold level are clipped before transmission. This affects the orthogonality of the OFDM symbols and, therefore increases the bit-error-rate. Other arrangements employ coding schemes to decrease the PAPR; however, the required coding overhead reduces the net transmission bit rate. In still other arrangements random phases are applied to the OFDM sub-carriers so that PAPR is reduced. However, the random phase information has to be supplied to the receiver in order to decode the received signal.